Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. The accountant at EZ Toys, Inc. is analyzing the production and cost data for its Trucks Division. For October, the actual results and the

1. The accountant at EZ Toys, Inc. is analyzing the production and cost data for its Trucks Division. For October, the actual results and the master budget data are presented below.

Actual results

Budget data

10,000 trucks produced and sold

12,000 trucks planned

Unit selling price

$15

Unit selling price

$14

Variable costs:

Unit variable cost:

Direct materials

$52,800

Direct materials

$5

Direct labor

51,000

Direct labor

4

Variable overhead

23,000

Variable overhead

2

Total variable costs

$126,800

Total unit variable costs

$11

Fixed overhead

$9,000

Fixed overhead

$9,600

Calculate the actual, flexible budget and static budget income statements. Label the total variance due to cost control and due to activity/volume.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions